Medford mail tribune., December 16, 1962, Image 48

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Sandra Yudelevitz applies finish to walls of Laundromat she owns with two other Cleveland secretaries.
Tunick, founder of the highly successful "Chicken
Delight" chain, "is that the man who owns his
business finds the 25th hour in the day to make
it work."
As a rule, however, the average franchisee is
in business for himself because he wants to be
independent and make more money. In the
"Chicken Delight" chain, selling precooked
carry-home dinners, a glittering example of
hard work and success is Werner Maahs, a for
mer policeman from White Fish Bay, Wis.
In 1954, then 27, married, and on the police
force five years, Werner hungered for a chance
to better his lot. His duty frequently took him
to. a corner where there was a franchised
"Chicken Delight" store, one of the first in the
chain, operated by two young partners. Im
pressed, Werner made inquiries, applied for a
franchise, and with family help raised the cash
he needed to get a "Chicken Delight" store of
his own.
Today Werner has an interest in several
"Chicken Delights" and is a vice president in
the parent firm.
The average small-business franchise, accord
ing to Roger Sherwood, publisher of "National
Franchise Reports," requires cash investments
ranging from about $4,000 to $6,500. But the
amount invested in a franchise is no indication
of how much you can make. It really depends
on how hard you're willing to work and whether
you want to plow profits back into the uusiness
for expansion.
The first challenge in a successful franchise
is knowing where, when, and how to choose
your new business. There are no set patterns
in financing or locating a franchised business.
Many parent companies will assist you directly
in the financing, others will refer you to banks
and will assist indirectly by guaranteeing part
of the loan.
Some companies will find suitable business
locations for you while others prefer that
you find the location first, and then they will
check it out.
The most important part of choosing a fran
chise is to be certain that you are dealing with
a reputable parent company, especially now
that some sharpies and outright gyps are get
ting into the act. To protect yourself, here are
five important rules:
1. Never sign a franchise contract without
legal counsel or expert opinion.
If you can't afford a lawyer, at least seek the
advice of close friends and family, especially if
one of them is an accountant or is experienced
in business. Above all, beware of the fast-talking
smoothy who wants you to sign on the dotted
line immediately.
2. Investigate the parent company's reputa
tion and credit standing.
You can do this through your local Better
Business Bureau, Chamber of Commerce, and
banker. The National Better Business Bureau
headquarters in the Chrysler Building, New
York City, and the Small Business Advisory
Service of the Bank of America issue free pub
lic bulletins on how to evaluate a reputable
franchise offer.
3. Try to visit the parent company's home
office before signing
Some franchising companies insist on this.
All reputable companies will welcome your de
sire to do so. Most of the phony outfits will dis
courage such visits because they are obviously
not equipped to provide the assistance they may
claim to offer.
4. If nothing else, be sure to visit two or
more of the franchisees already in business
under the parent-company name.
Ask these people how they get along with the
parent company; whether they are satisfied that
the business is all it was said to be; and don't be
afraid to ask how much they invested as well as
how much they are grossing.
5. Be sure that the franchise contract truly
gives you the right to be your own boss with the
continuing help of the parent company.
This means that you must have the right to
sell the business at whatever capital gains
(profit) you may care to make, and while you
are in business the parent company must con
tinue to offer you assistance in such matters as
promotion, publicity, advertising, product im
provement, and proper management of the busi
ness. Some companies offer business opportu
nities under the name "franchise," but actually
all they do is help you get started in -business
merely to sell their equipment to you.
Finally, remember that real franchising is a
two-way street: you will be successful only be
cause the parent company needs you in order to
sell its products and services through you. To
gether, you can follow the franchise road to
financial independence.
Where to Look for
Franchise Opportunities
1. Many advertisements for franchises ap
pear in the classified columns of daily news
papers under "business opportunities."
2. Another source of current franchise op
portunities is "National Franchise Reports," a
monthly newsletter, $12 a year, published at
333 N. Michigan Ave., Chicago 1, 111. The same
publisher also sells a "Franchise Annual," $1.
3. A "Directory of Franchising Organiza
tions," $2, is sold by Pilot Publications, 42 W.
33 St., New York 1, N.Y.
4. Franchise offers also appear in the adver
tisements and stories of the industry's trade
magazine, "Modern Franchising," 549 Washing
ton Blvd., Chicago 6, III.
5. Periodically, the franchising industry
holds "trade shows" in key cities, where fran
chises are offered to the public. For information
about forthcoming shows, write to: The Inter
national Franchise Assn., 549 W. Randolph St.,
Chicago 6, III.
6. Franchise consultants and marketing agen
cies also offer opportunities through direct in
terviews. A complete list of these firms appears
in "The Franchise Boom: How You Can Profit,
in It," by Harry Kursh, Prentice Hall, $5.95.
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